TERROR police investigating after a knifeman repeatedly shouting "Allahu Akbar" deliberately drove a car at police outside Buckingham Palace and then reached for a 4ft sword, leaving two officers injured have arrested a second suspect.

Scotland Yard said detectives investigating the terrorist incident near Buckingham Palace on Friday night have arrested a 30-year-old man at an address in West London.

The man was arrested on suspicion of being involved in the commission, preparation or instigation of terrorism at 10.15am today.

He has been taken into custody.

Police are searching an address in West London as part of this inquiry.

The arrest was carried out by officers from the Met’s Counter Terrorism Command who are investigating the terrorist incident in Constitution Hill which resulted in three officers receiving minor injuries on Friday night.

A warrant for the further detention of a 26-year-old man who was arrested on Friday night after the incident has been granted. This warrant will expire on Friday, 1 September.

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Two officers were injured after tackling a man who drove a blue Toyota Prius at a marked police vehicle near Buckingham Palace on Friday night.

Scotland Yard said the incident is being treated as terrorism.

Commander Dean Haydon, of the Metropolitan Police counter-terrorism branch, said: "We believe the man was acting alone and we are not looking for other suspects at this stage.

"It is only right that we investigate this as a terrorist incident at this time.

"Uniformed officers then confronted the driver of the vehicle and during that confrontation the driver reached for a four-foot sword that was in the passenger footwell.

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Man attacks police officer at Buckingham Palace

"CS gas was used as part of the arrest and during the struggle the individual repeatedly shouted the words Allahu Akbar."

The Metropolitan Police said the man had been arrested outside Buckingham Palace after he was first spotted by officers at 8.35pm outside the Royal residence in London.

He was initially held on suspicion of grievous bodily harm and assault on police after being stopped allegedly in possession of a weapon on The Mall.

Counter-terror police are now investigating and the 26-year-old, who was also arrested under the Terrorism Act, is being questioned by officers at a station in central London.

"The man was stopped this evening, Friday 25 August at approximately 20.35 hours by officers at the Mall outside Buckingham Palace in possession of a knife.

"During the course of detaining him, two male police officers suffered minor injuries to their arm.

"The London Ambulance Service were called and they were treated at the scene. They have not been taken to hospital.

"No others persons have been reported injured.

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There is a heavy police presence outside the palace, with emergency vehicles packing out the road

"Officers remain on scene and enquiries are ongoing."

Detective Superintendent Guy Collings later added: “A man in his mid-twenties has been arrested by police after they spotted a weapon inside his car.

"The quick and brave actions of both officers meant that the suspect was detained very quickly. No members of the public had any interaction with this individual at the scene.

"He will now be questioned by detectives in police custody. It is too early in this investigation to speculate any further.”

On Saturday, Prime Minister Theresa May said in a message on Twitter: ”I want to thank the officers who acted quickly and bravely to protect the public last night demonstrating the dedication and professionalism of our police.”

Birdcage Walk and The Mall – the roads running around St James's Park – were taped off as officers sought to gain control of the situation.

With the start of the busy Bank Holiday weekend, which includes the Notting HIll Carnival, people across London will see an increased police presence on the streets.

Mr Haydon urged members of the public to remain vigilant and alert.

Scotland Yard said that officers from the Counter Terrorism Command are carrying out searches in the Luton area.

In a statement, Mr Haydon said: "We believe the man was acting alone and we are not looking for other suspects at this stage.

"While we cannot speculate on what the man was intending to do - this will be determined during the course of the investigation - it is only right that we investigate this as a terrorist incident at this time."

The former leader of Ukip, Nigel Farage, wrote on Twitter: "The attack at Buckingham Palace last night tells us police officers should now be armed with tasers at the very least."

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Police of cordoned off the area surrounding Buckingham Palace

Two police officers suffered minor injuries during the course of detaining the man

Another passer-by said her partner had seen the weapon, which he initially thought was a sword.

She said: "Something happened before which is why the people ran away. I'm not sure what this was.

"But people were already scared and I saw the policeman pull the man from the car.

"The police didn't just run up to the car. There was some shouting prior to this, I couldn't tell you what, I was a bit panicked, then I went to the small crowd as this seemed the safest place to be, on the memorial.

"My partner saw a sword, which I didn't see, as well as a policeman with blood on him, looking like his hand or chest was injured.

"The police officer had it in his hand, walking away with it."

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Scotland Yard said the officers suffered minor injuries in the course of arresting the man

The 25-year-old consultant said: "I was walking toward The Mall and St James's Park when I saw police rush down toward the palace in great numbers.

"As we got further down The Mall we saw armed police outside a police van, at which point we were able to walk closer to the palace still, where we were eventually stopped by a cordon. All we were told was that there's been an incident.

"A few minutes later police came by to have us clear the area and move further away from the palace.

"We then saw that police had expanded the cordon. It looks like the cordon is continuing to expand."

The incident comes ahead of London's annual Notting Hill Carnival this weekend where security has been increased following terror attacks in Manchester and London this year.